Wages, Fees and Penalties

When it is determined that a complainant is due back wages or when it is determined that there is a violation of any of the laws and regulations under the jurisdiction of the Division of Wage and Hour Compliance, the employer is sent an Assessment Letter. This letter spells out in detail the wages, fees and penalties which are due.

Wages - These are the unpaid wages that the investigator has determined are due. The wages may represent unpaid hours of work, unpaid overtime hours, or payment of less than prevailing wage. This part of the Assessment Letter is self-explanatory and includes the name or names of the persons to whom wages are due. As the employer you have the right to either pay these wages directly to the employee or you can submit payment to the Division and in turn the Division will disburse the wages. Follow the instructions on the notice that explains how the checks must be prepared and/or what proof of payment you must supply to the Division.

Fees - If you also owe a fee, the fee will be a percentage of the wages that are due. You will not be charged fees if no wages are due. The amount of the percentage varies depending upon your violations history. The first violation, results in a fee of 10% of the unpaid wages, a second offense results in a 18% fee and a third or more offense results in a 25% fee. The fees are paid directly to the State to offset the costs of the investigations. Fees are statutory in nature and are not subject to negotiation.

Penalties - If you also owe a penalty, the amount of the penalty will vary depending upon the severity of the offence, the number of employees impacted and your history of violations. Each employer has to be treated individually and there is no "one size fits all" penalty schedule. The penalties are not determined by the individual investigator and it is not within the investigator's jurisdiction to discuss the amount of penalties. The penalties are applied after the investigator submits the case and the supervisor reviews the both case and the employer history and determines the amount to be assessed. Some penalties are statutory in nature and are not subject to negotiation.

The New Jersey Department of Labor and Workforce Development is an equal employment opportunity employer and provides equal opportunity programs.
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